Cost of capital
Analysis of the ever changing price of money
Stock prices rose last fortnight. The S&P 500 index of big American companies climbed 0.1% to 5,596. The index offers an 8.4% annual expected return at the current price.
According to šššš¢ššš's discounted cash flow model, the S&P 500 is worth about $5,379 per unit. This model, which relies on analysts' consensus estimates for each company in the iā¦